Breaking down MSP’s desirable office space

Of the 25.5 msf of available space in the Minneapolis – St. Paul office market, 3.5 msf is largely considered “undesirable.” If potentially troubled assets are also removed, 20.3 msf of available desirable space remains – this would bring the availability rate from 22.2% to 17.7%.
Class A space accounts for nearly two-thirds, or 66%, of the remaining desirable square footage (13.4 msf), while Trophy class assets represent just 11% (2.1 msf) and Class B product make up the remaining 24% (4.8 msf). Tenants in search of the highest-quality spaces (Trophy) and those not wanting to pay top-end pricing for leased space (Class B) may face challenges, as the amount of available space in these segments remains tight.
A closer look reveals even tighter conditions, as just 10% of the buildings comprising desirable available office space (91 buildings) accounts for 72% of the desirable square footage, limiting building location options even further for tenants seeking space.

November 1, 2024

US-MN-MSP Minneapolis